It’s an unfortunate fact that con artists and scammers will usually target the most vulnerable populations. We’ve all heard stories of elderly or disabled people being tricked out of large sums of money, or being sold plans or products which were completely worthless.
Now, scam artists have a brand new population to focus on-anyone who is confused about what healthcare reform really means. And since most Americans fall in to that group, this gives these scammers a huge new population of people to target.
Healthcare reform has spawned a whole new industry consisting of scam insurance companies and fake health plans. These con artists take advantage of the fact that no one truly understands the upcoming impacts of healthcare reform and use this to their advantage.
David Vladeck, the director of FTC’s Bureau of Consumer Protection has said that these scams are targeted towards the nearly 50 million Americans who are currently without medical insurance. “The uncertainty about the benefits that will be available under the new federal insurance program and the fact that the budget doesn’t kick in until 2014 is going to give scammers very fertile ground for this. They’re going to try to capitalize on uncertainty.”
The FTC along with state Attorney Generals is filing lawsuits against companies that mislead consumers by selling medical discount plans that offer some kind of savings but marketing them as complete health plans through misleading advertisements. The FTC is currently working with 24 states to crack down on medical discount plans that are being marketed as actual health insurance plans, and sold to individuals who do not currently have medical insurance.Many of these companies are successfully convincing people that, if they do not purchase this “insurance” plan, they will be out of compliance with the new healthcare laws.
Many states, including Florida, California and Nevada, have begun creating blacklists of companies known to be engaging in selling fraudulent insurance plans. The states are then issuing “cease and desist” orders to these businesses. The problem with that, however, is these companies have become adept at quickly shutting down and reopening under another name, thus being able to continue taking advantage of individuals with almost no interruption in business.
With all the confusion and uncertainty that still surrounds healthcare reform, these practices are liable to continue. If you encounter a company marketing what you believe to be fraudulent insurance coverage, please contact both the Federal Trade Commission and your state Attorney General.
Comments
Very timely advice
Great article, glad you informed us about these companies
The whole hcr thing is confusing enough without having to add scam artists into the mix. Thanks for sharing.
Healthcare reform spawns cons and scams and it doesn't surprise me one bit. Just as in every other industry, people will always try to take advantage of others. Be warned!
The con game is alive and well in most other industries as well ! Nice article!
Nice work :-) People need to be aware of these companies and the whole (ridiculous) HCRA thing is so damn confusing, con artists could pretty much say whatever they wanted and people will believe it. It's not like most of us will actually read the 900+ page bill
Got something to say?
Examiner.com is looking for writers, photographers, and videographers to join the fastest growing group of local insiders. If you are interested in growing your online rep apply to be an Examiner today!